Hindustan Copper shares hit 52-week high; stock rallies nearly 157% in six months; analysts divided

Shares of Hindustan Copper Ltd jumped sharply in Wednesday's trade, rising 12.94 per cent to hit a one-year high of Rs 635. The stock was last trading 11.91 per cent higher at Rs 629.20. At this level, the state-owned miner has surged 156.87 per cent over the past six months, delivering multibagger returns to investors.

The rally follows the company's disclosure that it has been declared the 'Preferred Bidder' for a new copper block in Madhya Pradesh. Hindustan Copper participated in the state government's e-auction for the grant of a mining lease and composite licence for the Baghwari-Khirkhori copper and associated mineral block.

In its exchange filing, the company said the forward e-auction was successfully concluded on January 22, with Hindustan Copper emerging as the highest bidder after submitting the top final price offer. The development is in line with the company's strategy to secure raw material resources at a time when demand for copper remains strong.

On the technical front, a few analysts tracking the stock largely offered mixed views after the recent sharp upmove.

Drumil Vithlani, Technical Analyst at Bonanza, said, "Hindustan Copper remains firmly in a strong uptrend, marked by higher highs and higher lows, and sustained trading above all key EMAs. The stock has broken above the Rs 625 resistance zone with heavy volumes, reinforcing bullish continuation. Fibonacci projections indicate potential upside towards Rs 660–680 in the near term. Any short-term consolidation near current levels should be seen as a pause within the trend rather than weakness. Immediate support is placed around Rs 585–560, while the broader structure remains positive as long as the stock holds above the breakout zone."

However, AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, flagged caution at higher levels. He said, "Hindustan Copper's stock is bullish and also overbought on daily charts with the next resistance at Rs 657. Investors should be booking profits at current levels as a daily close below support of Rs 564 could lead to a downward target of Rs 475 in the near term."